What is a notice of disposition of collateral?

Under Section 9-611 of the Uniform Commercial Code, a secured creditor is required, in most circumstances, to “send a reasonable authenticated notification of disposition.” The notice is intended to provide the debtor, and other interested parties, an opportunity to monitor the disposition of the collateral, purchase …

What section of the UCC addresses the debtor’s rights to redeem collateral after repossession?

Finally, the bankruptcy court reviewed §7-9-506 (UCC §9-506), which grants the debtor the right to redeem the collateral at any time before the secured party has disposed of or entered into a contract for its disposition.

What is a commercially reasonable manner?

Commercially Reasonable Manner or “Commercially Reasonable” means, with respect to a given goal or requirement, the manner, efforts and resources a reasonable person in the position of the promisor would use, in the exercise of its reasonable business discretion and industry practice, so as to achieve that goal or …

How does UCC foreclosure work?

A UCC foreclosure sale involves the secured creditor disposing of the collateral in a public sale (i.e., an auction), without judicial process. Both The Mark Hotel and 677 Broadway decisions effectively support the notion that a UCC foreclosure sale conducted during a pandemic may not be commercially reasonable.

What makes someone a secured party?

The secured party is the lender, seller or other entity that has rights to the collateral pledged against a loan in the event that the debtor defaults.

What is a reasonable manner?

adj. 1 showing reason or sound judgment. 2 having the ability to reason. 3 having modest or moderate expectations; not making unfair demands.

Who is entitled to notification before disposition of collateral?

(A) any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;

When to send an authenticated notification of disposition?

(c) [Persons to be notified.] To comply with subsection (b), the secured party shall send an authenticated notification of disposition to: (3) if the collateral is other than consumer goods:

When does a secured party complies with the requirement for notification?

A secured party complies with the requirement for notification prescribed by subsection (c) (3) (B) if:

(A) any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;

(c) [Persons to be notified.] To comply with subsection (b), the secured party shall send an authenticated notification of disposition to: (3) if the collateral is other than consumer goods:

A secured party complies with the requirement for notification prescribed by subsection (c) (3) (B) if: